Coping with the crisis and export diversification

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Coping with the crisis and export diversification. / Abreha, Kaleb Girma; Smeets, Valérie ; Warzynski, Frédéric.

In: World Economy, Vol. 43, No. 5, 2020, p. 1452-1481.

Research output: Contribution to journal/Conference contribution in journal/Contribution to newspaper › Journal article › Research › peer-review

Bibtex

@article{1eeef202d2a8482781cfddc12789cd77,

title = "Coping with the crisis and export diversification",

abstract = "Using a highly disaggregated firm–product–destination level data from Denmark, we analyse how Danish exporters responded to the global recession in 2008–09 and the recovery that followed. We show that firms reacted mainly by adjusting their scale of export shipments and by extending their export portfolio outside of their core products and markets. More importantly, we also find that export diversification into fast-growing economies like China was associated with better export growth performance. Hence, trade reorientation beyond traditional market destinations accelerated export growth and as such constitutes an important mechanism for understanding the various determinants of firm heterogeneity.",

keywords = "Denmark, export diversification, intensive and extensive margins, trade collapse",

author = "Abreha, {Kaleb Girma} and Val{\'e}rie Smeets and Fr{\'e}d{\'e}ric Warzynski",

year = "2020",

doi = "10.1111/twec.12937",

language = "English",

volume = "43",

pages = "1452--1481",

journal = "World Economy",

issn = "0378-5920",

publisher = "Wiley-Blackwell Publishing Ltd.",

number = "5",

}

RIS

TY - JOUR

T1 - Coping with the crisis and export diversification

AU - Abreha, Kaleb Girma

AU - Smeets, Valérie

AU - Warzynski, Frédéric

PY - 2020

Y1 - 2020

N2 - Using a highly disaggregated firm–product–destination level data from Denmark, we analyse how Danish exporters responded to the global recession in 2008–09 and the recovery that followed. We show that firms reacted mainly by adjusting their scale of export shipments and by extending their export portfolio outside of their core products and markets. More importantly, we also find that export diversification into fast-growing economies like China was associated with better export growth performance. Hence, trade reorientation beyond traditional market destinations accelerated export growth and as such constitutes an important mechanism for understanding the various determinants of firm heterogeneity.

AB - Using a highly disaggregated firm–product–destination level data from Denmark, we analyse how Danish exporters responded to the global recession in 2008–09 and the recovery that followed. We show that firms reacted mainly by adjusting their scale of export shipments and by extending their export portfolio outside of their core products and markets. More importantly, we also find that export diversification into fast-growing economies like China was associated with better export growth performance. Hence, trade reorientation beyond traditional market destinations accelerated export growth and as such constitutes an important mechanism for understanding the various determinants of firm heterogeneity.

KW - Denmark

KW - export diversification

KW - intensive and extensive margins

KW - trade collapse

UR - http://www.scopus.com/inward/record.url?scp=85082928966&partnerID=8YFLogxK

U2 - 10.1111/twec.12937

DO - 10.1111/twec.12937

M3 - Journal article

AN - SCOPUS:85082928966

VL - 43

SP - 1452

EP - 1481

JO - World Economy

JF - World Economy

SN - 0378-5920

IS - 5

ER -

Department of Economics and Business Economics